29 Jul How to Find Deals in a HOT Market with Rick Bean – CREPN #51
The Multifamily property marketplace is HOT. Rick Bean with Rose City Commercial Real Estate explains what it takes to compete in a compete and how to find deals in a HOT Market. [x_audio_embed][/x_audio_embed] Return on investment is the goal for every investor. When the stock market is not providing the desired rate of return, so where do investors go? When foreign markets are not providing a positive return, so where do foreign investors go? They go to the US Multifamily Marketplace SUBSCRIBE iTunes Stitcher Since the collapse of the mortgage and housing market in 2008, demand for apartments has risen sharply. This demand is expected to continue for the next couple of years, giving investors a place to invest. The collapse of the mortgage market forced homeowners who lost their home to foreclosure into the renters market. Many potential buyers have decided they are no longer interested in being burdened by a mortgage, or do not qualify for a bank mortgage to buy a single family home. Combined with baby boomers leaving the suburbs for an urban apartment or condo and the millennials who chose to rent, the housing market has shifted. The housing consumer wants to rent. This demand for urban multifamily living for units that have not yet been built will bode well for developers and investors. More demand than supply pushes the price up. Rents in urban markets like Portland, have pressed upwards double digits year over year, and has caught the attention of investors looking for return. Real Estate Investors looking to take advantage of the market conditions, are struggling to find properties to buy. The increased rents, net operating income and demand for properties are squeezing the cap rates to record lows. The rising rents and minimal vacancies have kept many owners from selling their multifamily properties. The available supply is well below the demand. Most buyers start looking for a property is the internet. Sites like, google, loopnet and zillow, make it easy for investors to get educated on the market. Properties listed on these sites are being actively marketed. When demand is greater than the supply it is a Sellers Market.